U.S. sovereign bonds were mixed Monday after a sale of two-year notes saw weak demand and amid a dip for stocks and oil prices.
The Treasury Department auctioned $26 billion in two-year notes at a high-yield of 1.056 percent. The bid-to-cover ratio, an indicator of demand, was 2.8 versus a recent average of 3.29.
Indirect bidders, which include major central banks, were awarded 37.5 percent against a recent average of 46 percent. Direct bidders, which include domestic money managers, took 27.1 percent versus a recent average of 14 percent.
Benchmark 10-year Treasury notes yielded 2.2242 percent after the auction, down from the last closing price of 2.243 percent. Two-year note yields rose to 1.0108 percent, up from 1.002 percent. (Bond prices move inversely to yields).